Washington County; refundable sales and use tax exemption for construction materials provided.

A bill for an act

relating to taxation; sales and use; providing a refundable exemption for

construction materials for certain projects in Washington County.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.
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WASHINGTON COUNTY; SALES TAX EXEMPTION FOR

CONSTRUCTION MATERIALS.
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Subdivision 1.

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Exemption; refund.

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(a) Materials and supplies used or consumed in,

and equipment incorporated into, the construction, reconstruction, upgrade, expansion,

renovation, or remodeling of the Stafford Library Remodel project and the South Highway

Shop project in Washington County are exempt from sales and use tax under Minnesota

Statutes, chapter 297A, provided that the materials, supplies, and equipment are purchased

after June 30, 2026, and before January 1, 2029.

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(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section

297A.62, subdivisions 1 and 1a, applied and then refunded in the same manner provided

for projects under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds

for eligible purchases must not be issued until after June 30, 2026.

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Subd. 2.

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Appropriation.

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The amount required to pay the refunds under subdivision 1

is appropriated from the general fund to the commissioner of revenue.

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EFFECTIVE DATE.

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This section is effective retroactively for sales and purchases

made after June 30, 2026, and before January 1, 2029.

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